Potentially functional.

Steelmonger Jindal displays enthusiasm for purchasing Thyssenkrupp's Ironworks, a move welcomed by the workforce and financial sectors alike.

, and Administrator

2025 September 19 . 5:16 PM

2 min read

Potentially functional.

In a significant development, Indian steel giant Jindal Steel has made an informal purchase offer for Thyssenkrupp's steel division. This move comes amidst the EP Corporate Group (EPCG)'s strategic involvement in Thyssenkrupp Steel, having acquired a 20 percent stake in Thyssenkrupp's steel business as of April 26, 2024. EPCG's positioning as a significant partner has put pressure on Thyssenkrupp Steel, particularly in the face of Jindal's interest.

The Jindal interest is well-received in the market, but many details about the potential deal are still open. Jindal Steel, known as the largest steel producer in India, has limited activities in Europe, but is active in many markets worldwide. This could make an investment in Thyssenkrupp's steel division strategically sensible, given Europe's continued status as a sales market for high-quality steel.

The steel division of Thyssenkrupp has gained traction due to the offer, and the corporate restructuring at Thyssenkrupp could gain further momentum as a result. Jürgen Kerner, deputy chairman of IG Metall, stated on WDR 5 that Thyssenkrupp Steel could be a "perfect complement" for Jindal Steel. The offer could potentially influence negotiations for a joint venture, according to analysts like Dominic O'Kane from JPMorgan.

The Thyssenkrupp share has seen a boost from this news, although it has since decreased by around two percent. The steel business has been under increasing pressure due to weak global economic conditions, cheap Asian imports, and high energy prices. Thyssenkrupp has been trying for a long time to find a buyer for its cyclical steel business.

The offer comes at an opportune time, as Thyssenkrupp's marine division TKMS is scheduled for spin-off in the fourth quarter. The Thyssenkrupp share, despite weak numbers, is still seen positively by some analysts. They are waiting for more details about the potential deal between Jindal Steel and Thyssenkrupp.

For investors, the Thyssenkrupp share remains interesting for the coming weeks, with a new 52-week high seeming possible. The WKN for Thyssenkrupp is 750000. The EP Group of Czech billionaire Daniel Kretinsky, Thyssenkrupp's major shareholder, is under pressure due to Jindal Steel's interest. Analysts are keeping a close eye on this development, and the potential deal could bring short-term momentum to Thyssenkrupp.